Former Reserve Bank of India (RBI) governor Raghuram Rajan recently engaged in a discourse on the topic of wealth redistribution in India, emphasizing the importance of inclusive growth. While speaking at an event at the Kellogg School of Management - Northwestern University, Rajan highlighted the notion that elevating individuals who are struggling economically may be more beneficial for overall growth than implementing heavy taxes on the affluent population.
The debate on wealth redistribution was prompted by remarks made by Indian Overseas Congress chairman Sam Pitroda regarding the concept of inheritance tax in the US, leading to a controversial discussion on the potential implications in India. The BJP criticized the Congress party for its stance on potential wealth redistribution, suggesting that if the Congress were to come into power, it might lead to the redistribution of wealth among Indians.
Rajan also addressed the issue of economic inequity and the need to focus on parts of the economy that have not experienced growth, especially post-pandemic. He underscored the importance of not neglecting these segments of the economy to avoid wasted resources and potential social conflicts. Furthermore, he touched upon the ethnic strife in Manipur, highlighting the underlying issue of job opportunities and reservations leading to tensions between communities, stressing the necessity of creating employment opportunities to harness India's demographic potential.